Inter-Island General Rate Increase Announced for U.S.V.I.

July 12, 2006 - As part of our commitment to the customers and communities that we serve, Tropical Shipping strives to provide the best competitive transportation value. Our ability to sustain and invest in the service you have come to expect from us has been affected by the increasing cost of operations.

In order to continue to provide the highest quality, on-time shipping services to our customers, ocean freight rate recovery is now warranted. Therefore, Tropical Shipping will implement a General Rate Increase (GRI) effective August 13, 2006, for all shipments to: St. Thomas, St. Croix and St. John originating from the following locations:

The General Rate Increase, effective August 13, 2006, will be as follows:

$100 per 20' container

$200 per 40' container

Additionally, the following General Rate Increase, effective August 13, 2006, will apply for all shipments between St. Thomas, St. Croix and St. John:

$25 per 20' Container

$50 per 40' Container

$0.05 per CFT LCL

$0.10 per CWT LCL

These increases will apply to all tariff and service contract rates and will give us the financial resources to continue to invest in our operations to better service our customers.

Tropical Shipping values the close relationships we have built with our customers throughout our more than 40-year history of dedicated service to The Bahamas and The Caribbean. We appreciate your cooperation during this time. For further information, please call your local transportation consultant or the Virgin Islands Trade Team at 561-881-3960 or toll-free from the U.S. at 1-888-578-5846.